What is a Junior ISA?

money saving piggy-bank-green

All you want as a parent is for your child to be healthy and happy, but we all know that having a child means thinking about their future too. What will my child do for a living, how will they afford university and what will they do once I’m not at their side anymore? As soon as Amy was born, I wanted to make sure that she is well looked after and started researching different options from opening a savings accounts to taking our life insurance. In the end, we focused on something that was relatively new when Amy was born: a Junior ISA.

If your child was born before January 2011, you will probably have never heard of it and ask yourself: What is a Junior ISA? And if your child was born afterwards, then you will probably ask yourself the same questions. Names that include abbreviations are always a little scary, but Junior ISAs really aren’t. If you want to set up a Junior ISA or if you are only doing a bit of research into all the options that are available out there, I hope these 10 must-know facts will help you find out, if a Junior ISA is what you and your family are after.

A Junior ISA…

  1. is a government scheme in the UK encouraging parents to save for their children
  2. is the replacement for the former Child Trust Fund
  3. is eligible to children born on or after 3rd January 2011 and before September 2002
  4. can only be opened by parents or guardian, but relatives and friends can contribute to it
  5. allows parents to save up to £3600 up until the 18th birthday of their child
  6. can come as a cash or investment ISA, which focuses on stocks and shares
  7. locks the money until your child’s 18th birthday and does not give you any access
  8. turns into a normal ISA once your child is 18 and allows them to keep the tax
  9. based on shares and stocks can change in value
  10. can be moved from one provider to another to guarantee a better return

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